Personal Liability vs. Personal Injury

There can be a lot of confusion between Personal Liability and Personal Injury Insurance.  What are they? What’s the difference? Do I need the coverage?

Let’s start with the basics and define these terms to figure out why they’re important.

Personal Liability – provides coverage for bodily injury and/or property damage sustained by others for which you or your family members are legally responsible. It covers things like medical bills and legal fees if a guest is injured on your property. For example, should your dog bite a visitor in your driveaway, your personal liability insurance would cover their medical bills. As a result of the dog bite, they cannot work and are suing you for loss wages. Your personal liability insurance will cover those legal fees as well.

Personal Injury – provides coverage for things other than bodily injury or property damage. This includes false arrest, detention, or imprisonment; malicious prosecution; wrongful eviction; slander; libel; and invasion of privacy.

This would be a claim based on mental or psychological damage. Let’s say your child bullies someone online and the victim suffers mental harm, your personal injury insurance may pay for the costs of the victim’s therapy.

Personal Injury Coverage – Do I need it?

Most homeowners insurance policies do not automatically come with personal injury coverage. This is an optional type of coverage, or “endorsement” your agent must add to your homeowner’s policy to provide coverage. The average cost to add this endorsement is around $15 a year.

With the ever increasing presence of social media in our society, you might be more at risk than you think for a personal injury claim. Cyber bullying and keyboard warriors are more prevalent than we would care to admit. We are ultimately responsible for the actions of ourselves and our children, both in person and online. When living in a society where people don’t think twice before suing each other, this might be coverage worth having.

Make sure you are properly covered. Talk to your agent to discuss the options that are best for you and your situation.